Copper prices have surged above $13,000 per ton due to two main worries: a strike at Chile’s Mantoverde mine and concerns about new US tariffs. Although the strike could last over two months and may affect supply perceptions, the mine only accounts for less than 0.5% of global copper supply. The operator aims to keep 30% of usual production running with the available workers. This dispute highlights growing tensions between workers and mining companies amid high copper prices, raising the possibility of more strikes. The second worry involves US tariffs on refined copper, with a decision expected by the end of June. Previous tariffs created higher prices for copper on the New York COMEX compared to the London Metal Exchange (LME). While these price differences have recently decreased, COMEX copper stocks continue to grow, sparking fears of future supply issues. The market has reacted with increased trading, and commodity analysts are monitoring the situation closely. These events highlight the ongoing uncertainties in global copper supply. Looking back at 2025, the price spike above $13,000 per ton was mainly due to supply concerns from the Mantoverde mine strike and the anticipation of US tariffs. These supply-side worries persist as we enter 2026, making the market tense. Any new disruptions could trigger another price surge. Given the ongoing risk of supply interruptions, traders might want to consider buying call options. Labor tensions in Chile from 2025 are still present, and further strikes could occur throughout this year. Call options could provide a chance to benefit if another supply disruption causes prices to spike again. However, uncertainty about demand calls for caution, making protective put options a smart choice. While China’s copper imports hit a record high of 27.54 million tons in 2025, concerns about the cooling property sector are rising. A significant drop in Chinese construction could quickly lower prices. The market disruption from last summer’s US tariffs also offers a chance to profit. There’s a noticeable difference between copper prices in London and New York. Traders might explore spread trades, such as going long on LME futures while shorting COMEX futures to take advantage of changing regional price differences. Recent data highlights this regional scarcity and supports such strategies. LME-registered copper stocks are at an 18-year low, sitting at just 55,550 metric tons. Meanwhile, COMEX inventories are more stable, around 20,100 short tons, reflecting the stockpiling before the 2025 tariff decisions. With high implied volatility likely to continue, taking outright long or short positions carries risks. Instead, strategies like bull call spreads could be effective. This approach allows traders to participate in potential price increases while limiting maximum risk, making it a wise strategy for now.

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